Holden Beach, Ocean Isle or Oak Island?

Question

I'm looking for an ocean front or 2nd row house to purchase as a short-term rental. For those in the area with experience do you have an opinion or guidance as to the best performing location, Holden, Ocean Isle or Oak Island?

Thanks in advance for any assistance!

Joe Prillaman · Answer

My wife and I love Oak Island. From a gross income perspective I think Holden is better but from a price point perspective Oak Island is better. Overall not a big difference from a cash on cash return perspective. Really depends on the area you like the best!

Wes M. · Answer

I think that's a great question. As @Joe Prillaman noted, Holden or Ocean Isle may have higher gross incomes. However, you can find properties in the Yaupon section of Oak Island, on the second row, that are located outside of the Special Flood Hazard Area, which lessens your operating costs due to not having to pay for flood insurance (link to online map here). We are set to go live on our first short-term vacation rental in the next few weeks (a few pictures below). We chose Oak Island because of the entry cost and ability to acquire a property in very close distance to the ocean, and also restaurants, for a lower price point. Added bonus for us was the 10,000 square foot lot and live oaks on the property -- hopefully something unique to attract more guests (or headaches from cleaning leaves, etc.), but time will tell. At the end of the day, perhaps choose the one you find most desirable for your circumstances.

Ryan Johnston · Answer

Oak Island is great, and most likely the next area we are looking to invest. Happy to answer any questions you may have with financing, as well as STR. Good luck @Bryan Beam!

Bryan Beam · Answer

Thank you Frances for your detailed response! For the reasons you mentioned, Holden Beach ended up being our choice as well. I hope you will continue to enjoy it!

Eric Banks · Answer

We bought an OF at Holden this past November. Will let you know how it goes this year!

Bryan Beam · Answer

Thank you @Wes M. I appreciate the response. I wish you very well with your first STR.

Wes M. · Answer

The 50% rule is a federal flood rule that originates in the Code of Federal Regulations and is administered by local governments. Happy to chat further if you have questions about a specific area. Often times, you can seek an appraisal for the structure value to help increase the total amount of renovation expense that can be put into a property. It is not that you can't rebuild, the rule requires that you must bring the structure into conformance with the updated flood rules. If you are referring to ocean front structures, there are additional CAMA rules in place that go above and beyond the flood rules for renovating a structure located within or forward of the oceanfront setback. Coastal development is much more complicated than projects further inland.

V. Moncrieff Rose · Answer

We were down at Oak Island / Holden Beach area this weekend and we were told that Holden Beach has passed some sort of local law (ordinance?) about if your home is damaged/flooded in a storm and the damage is over 50% of the value they won't let you rebuild. Apparently a measure to mitigate re/building in high-risk areas? Has anyone else heard this?

Frances Wolf · Answer

I was looking to purchase a beach house some where in North Carolina so I could be close to my home base of Charlotte, NC and not feel like when I returned, I would need a vacation from my vacation.. I checked out all the beaches from Sunset to the outer banks and this is what my wife and I surmised: We immediately crossed OBX off our list because it was very far and because of the lack of medical care nearby…you have to think of these things once you have children. Sunset was ok, but not quite what I was looking for in a beach destination. Ocean Isle was very pretty, had lots of charm, but way overbuilt now for my liking. I am needing relaxation from the city enviornment, so I didn’t want to be stressed out at the beach too. We really enjoyed Holden Beach because it was not overbuilt, no high rise hotels or condos, very family oriented and very peaceful…almost like going back in time when things were slower and quieter. Oak island had beach erosion issues which I didn’t want to deal with every year. Wrightsville has become very expensive and very crowded even thought it is a beautiful island. Carolina Beach was a headache to reach and maybe too much of a party town for me. So, there you have it….we settled on Holden Beach and we are enjoying it immensely.

Sam M. · Answer

How went it?? Is the market softening?